The average interest rate on long-term mortgage loans in the United States declined this week to its lowest level in more than three years, although it remains above the 6% threshold.
The U.S. mortgage finance institution Freddie Mac reported that the interest rate on 30-year mortgage loans fell this week to 6.01%, compared with 6.09% last week and 6.85% during the same period last year.
With this decline, the rate has reached its lowest level since the week ending September 8, 2022, when it stood at 5.89% — the last time the rate dropped below the 6% mark, according to the Associated Press.
This decrease in interest rates is considered a positive indicator as the spring homebuying season approaches, offering a better opportunity for buyers ready to take advantage of current pricing conditions.
Meanwhile, borrowing costs for 15-year fixed-rate mortgages — typically preferred by homeowners looking to refinance — also recorded a slight decline this week.
The average interest rate on these loans fell to 5.35%, compared with 5.5% last week and 6.04% during the same period last year, according to Freddie Mac data.
